Effects of U.S. Farm Programs on Equity and Efficiency

This paper analyzes the tradeoffs present between equity and efficiency in farm policy. In terms of equity, we are concerned with the implications of policies on the distribution of income. For efficiency we consider how the profitability of farms is impacted by the same government policies. Specifically of interest will be the relative contributions of direct payments, commodity payments, and conservation payments to each of these measures. Results show that relative to direct payments commodity payments are more efficient (in terms of increasing average farm profitability) but less equitable (large farmers dominate the income gains). Conservation payments are found to be both less equitable and efficient relative to direct payments. We identify segmentation of the farm household population as a limitation of the analysis with respect to measuring impacts of conservation payments.


Issue Date:
2008
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/6064
Total Pages:
28
Series Statement:
Selected Paper
469285




 Record created 2017-04-01, last modified 2017-11-16

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